OTHER NEWS
(Bloomberg) -- Credit Suisse Says Gold Drop May ‘Bottom Out’ Above $1,500
Gold may “bottom out” above $1,500 an ounce, Credit Suisse Group AG said in a report e-mailed today. Selling may stall as “buying of physical emerges in greater volume from both the Chinese market and emerging market central banks,” the bank said.
(Bloomberg) -- Gold No Longer a Safe Haven, UBS Says in CIO Monthly Letter
Gold is no longer a safe haven, UBS AG said in its monthly CIO letter. “Going into 2011, most investors believed that safe havens included gold, the Swiss franc, U.S. dollars, U.S. Treasuries, and Japanese government bonds,” the bank wrote in the letter. “As we enter 2012, neither gold nor the Swiss franc retains a safe haven status.”
(Bloomberg) -- Gartman May Buy Gold If Prices ‘Cascade’ Below Yesterday’s Lows
Economist Dennis Gartman said gold may “cascade” lower if prices drop below yesterday’s lows by early next week. If that were to happen, Gartman would “begin to look again at buying gold,” he said today in his daily Gartman Letter. He sold the last of his gold earlier this week.
(Bloomberg) -- China’s ICBC Says It Joins London Bullion Market Association
The Industrial and Commercial Bank of China Ltd., the world’s largest bank by market value, has joined the London Bullion Market Association as a full member, as the country’s imports of the precious metal gained to a record.
The Beijing-based bank will use the opportunity to forge itself into a global precious metal investment and management bank, according to an e-mailed statement from the lender. The LBMA is the London-based trade association that represents the wholesale over-the-counter market for gold and silver in London. China is the world’s largest gold producer.
The public is already starting to become aware of the gold bull. All we need at this point to start the flood is for gold to recover quickly from this selloff. If gold quickly shoots back up and tags, or penetrates that big psychological $2000 number I expect it will be the siren call that draws the public into the bull market. And it is the public coming into a market that triggers the bubble phase.
During this phase of the bull I expect gold starts to accelerate into what will almost certainly be the most incredible parabolic advance, maybe in history. By the fall of 2014 I expect we will see gold somewhere between $7,000 and $20,000 an ounce By Toby Connor, GoldScents)
